The Kyoto Protocol,1992 in the UN Framework Conventions on Climate Change but adopted in 1997 established the basis of Carbon Trading, Carbon offsets.
192 nation agreed to reduce Carbon emissions, which Identifies the 6 GHG gasses as 1) CO2 2) methane, 3) N2O 4) hydrofluorocarbon 5) perfluorocarbon and 6) sulphur hex-fluorocarbon. All these gases are referred to as Carbon emission, Carbon dioxide is the weaker global warming effect but the amount of it is the largest amount. Before the Kyoto Convention 2 Convention were held to establish the basis of Carbon emission, what is was considered as Carbon emission etc.
Carbon Trading Price Fluctuations
The Carbon Trading has been defined in 3 conventions as follows:
a) Earth Summit-Conference on Environment and Development –UNCED, Rio 1992
b) United Nation Framework Conference on Climate Change UNFCCC( not binding due to no time limit was set by the UN
c) Kyoto Protocol, 1997
Carbon Trading is under the purview of the UN, Article 26 of the Vienna Convention on the Law of Treaties 1969 and therefore the Kyoto Protocol is a treaty
In Malaysia, the Ministry of Natural Resources and Trade is in charge of CDM. In Malaysia, 100 tonnes were traded in 2008, at RM4.8 Billion. I ton of carbon was sold at RM48. The price of carbon rallied from US 25 – US 12 over these years.
Ways to earn Carbon Credits for Carbon Trading
There are a few established legitimate ways of Carbon trading , which are:
a) using PV solar panels as Carbon Offsets are made
b) using wind turbines as Carbon Offsets are made
c) designing Net Zero Carbon Emission buildings or Net Zero Energy Buildings
d) Managing a forest ( Tropical) or wetlands, as the soil and tree sequesters CO2 by using PV solar panels as Carbon Offsets is made
e) Investing in a Carbon reducing projects such as Renewable energy projects, Geo-Thermal, Biomass, PV solar panels, micro turbine and wind turbines.
How much can you gain by Carbon Trading?
A typical building as in a 100,000 sq ft of gross built commercial space up area can offset carbon 390 tons of carbon per year.
The financial amount you can trade is 390 ton per year xRM48/ton=RM18,720
Carbon Emission for Combustion Fuels
Gasoline…………. 0.27kg CO2/kWh
Light Oil…………. 0.26kgCO2/kWh
Malaysian CO2 Emission Coefficient Rate is 0.631 kgCO2/kWh
Prepared by Ar Perumal Nagapushnam
Net Zero Emission Building Architect